British Steel - Dutch Royal Hoogovens Merger: An Anglo-Dutch Marriage not Working Out?
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : BSTR144
Case Length : 20 Pages
Period : 1999-2004
Organization : British Steel
Pub Date : 2005
Teaching Note : Available
Countries : UK, Netherlands
Industry : Steel
To download British Steel - Dutch Royal Hoogovens Merger: An Anglo-Dutch Marriage not Working Out? case study (Case Code: BSTR144) click on the button below, and select the case from the list of available cases:
OR
Buy With PayPal
|
Price:
For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Shipping & Handling Charges extra
» Business Strategy Case Studies
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
EXCERPTS
Rationale Behind the British Steel-Hoogovens Merger
On October 6 1999, British Steel and Hoogovens merged to form Corus, one of the leading manufacturers, processors and distributors of steel and steel based products in the world (Refer to Exhibit IV for the status of the two companies prior to the merger).
The merger deal was valued at £3.9 billion and the combined group was expected
to produce 22.5 million tonnes of steel per year.
|
Corus established 20 business units worldwide, delivering innovative solutions to a broad range of markets, including the construction, automotive, packaging, aerospace, energy and engineering industries.
In the memorandum submitted by Corus to the Science and Technology Committee of the House of Commons, (part of the UK parliament) on April 5, 2000, it was stated that the strategy of the new company would be to create value by providing innovative metal application solutions to attractive market segments where leading positions could be achieved...
|
|
The Organizational Structure
According to analysts, the merger of British Steel with Hoogovens was motivated by financial and market considerations and HR's involvement in the process was not well defined.
|
|
Allan Johnston, executive director responsible for HR in British Steel, stated that the aim of the pre-merged entities was to acknowledge the differences that existed between the two companies and therefore create a very decentralized management structure.
According to him, the new company showed willingness to accept the differences in the way business was conducted in the Netherlands and the UK, and therefore important policy-making, bargaining, work councils and union relationships were all devolved rather than being centralized. |
Corus was registered as the parent company of Corus UK Limited and Corus Nederland BV, both of which were wholly owned subsidiaries...
Excerpts Contd... >>
|
|
